I lay out a few of those reasons in a light-hearted tone in my Scalp vs Swing Article. This article has gotten a lot of attention.

I believe that one of the big issues with Forex traders today is that they are so caught up in short-term trading and scalping. Which again, I really do have a hard time believing traders can be profitable with. I am now using a long term strategy, trading the hourly charts. I think the above statement is one of the issues with Forex Traders today. And why so many have a lot of trouble being profitable.

Learning this type of trading is one way you can learn how to become a successful forex trader. For some reason, the majority of traders—especially beginners—are so bent on scalping. I know my friend, Zaheer , will agree with me on this one. Then, perhaps, using a lower time frame to actually execute the trade for more precision. Before I get into the actual strategy, I want to dig a little more into why the right perspective is important when it comes to trading long term strategies.

I know that many of you only care about the actual strategy guidelines, but I believe that the following information about perspective and a holistic approach is more important than the strategy guidelines.

You can also read a million USD forex strategy. In the above chart, you see that there is a lot of bullish momentum moving toward higher highs. From this perspective, it looks as though all bullish continuation set-ups will be great entries.

You'll notice the bullish rally on the 4HR chart is just a pull-back rather than a raging trend as it appeared before. Also, read the weekly trading strategy that will keep you sane. Not only is it a pullback, but it is a pullback heading into unsuspected resistance.

If we move a little bit ahead in time, you can see a bearish bounce off the resistance level. To the trader viewing only the 4HR chart, this may look like a great time to buy again in anticipation of Bullish trend continuation.

What the 4HR trader may not realize is that this is not a pullback of the 4HR trend. Rather, it is a continuation of the Weekly trend. To the 4HR trader, this looks like an unexpected major reversal in the market. To a long term trader, it is an obvious and expected continuation of market flow.

It looks like this in the Weekly view:. This is why it is so important to have a long term view of the market. Especially if you are going to call yourself a long term trader. Again, so many people looking at 4HR charts think they are long term traders. But they are ignoring the real long term time frames. Ignoring this can get you into big trouble, just like in this real-life example. Those two bearish weekly bars you see would crush someone trying to take long positions on the 4 Hour chart.

Yet they are just part of the flow in the Weekly view. Now, I am not saying that you cannot trade profitably on the 4HR charts. I am saying that it is very difficult to make consistently profitable trades when you do not have a good perspective of the markets longer-term movement. Especially when trying to trade an intermediate time frame like the 1 or 4 hour time frames. One major note about this strategy is that you must be disciplined if you want to succeed. Yes, you need to be disciplined with all strategies to expect success.

One of the biggest mistakes that unprofitable traders make is over-trading and over-managing their trades. As human beings, we have a desire for action and involvement. This tends to cause us to always want to have a trade open or always want to manipulate the trades we do have open.

I can promise you that this will only lead to less and less profitability. If you want to be successful using the long term strategy that I am presenting to you, you must accept that there will not be a ton of entries.

Which is a good thing, in my opinion. Also, read about the best forex indicators. Look for trends on these longer-term charts that have good momentum in the respected direction. Something like this:. Identify the direction of the trend bear or bull. Make a note to only look for entries in the direction of that trend for instance, if it is a bullish trend, look for buys. In other words, the criteria has lined up for you to make a trade, now all you need is the signal to confirm your forecast.

For this strategy, the signal is a momentum daily bar in the direction of our long term trend. An ideal daily signal candle will have a tail that has tested pierced through the Fib level, but then reversed back into the direction of the trend:. Trading is all about Math—a good strategy has winners and losers, but at the end of the year, the winners out-weigh the loser. They will in this strategy if you follow it with discipline! To help with the math, try the forex trading position size calculator tool.

Hope you guys enjoyed learning one of my favorite long term strategies. Please leave a comment with any feedback. Comment if you plan on trying the strategy or comment if you hate the strategy!

So, please give this strategy a 5 star if you enjoyed it! Trading Strategy Guides is offering a special discounted offer to our long term trading strategy. We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more.

Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.

The trade shown, in my opinion, was not a solid trade. The bullish pull back piercing the fib was only followed by a small bearish candle that wasn't full bodied.

It's indecisive. If you wait for the full bodied decision candle going in the direction of the trend bearish here after piercing a major fib level you would not have entered until the 50 fib was pierced.

That may have prevented you a loss on entering on any trend following candle with no substantial body decision by the market. You're providing great info here. keep it up. Enjoyed the writing and video's but will have to go over it again a few times as I am a newbie and using longterm for the fist time. Thank you for the information, they are helpful and exciting.

I think the reason most people try to scalp is they are taught to be scared of the market by teachers that are trading failures I agree with Nathan, the trader that is here for the long term is a swing trader the data that can be used is measured in volumes instead of snippets the next thing to get past is letting a profitable trade run and not being so scared of a loss you fail to maximize profits the one piece of advice I would give every trader is learn enough about Elliott Wave to distinguish the difference between motive waves and corrective waves and once you see the tell tale sign of one, know what the most likely out come of the next move is it a retrace or breakout, and how far is it expected to travel so I can set profit targets with no guess work and I can set stops that only trigger when I am proved to be wrong Good trading everyone.

Nathan, how do you deal with the swap rates with this longer term strategy? I trade this way but often have to close a trade due to the overnight swaps. What broker do you use? I am looking for a broker with competitive swap rates, I know some pairs have a positive value but I cant consider that when looking at the longer trends. Thanks, Tom. Thanks Nathan! An awesome strategy! It is my favourite strategy.

My problem is I lack the necessary patience it needs to be profitable. You wrote "Trading is all about Math—a good strategy has winners and losers, but at the end of the year, the winners out-weigh the losers. They will, in the strategy, if you follow it with discipline! Great write-up! Very encouraging! I am definitely going back to this strategy in Excellent strategy, I have been looking for a good simple long term strategy,this will free up my time and still allow me to be involved in trading.

Thanks very much 🙂. I totaly agree. But the main think is: why should the market go up or down? The future events, news, data are unknow, therefore from pragmatic point of view it's pure betting. But makes much more sense betting higher time frame than lower, because of volatilty and more clear trend.

If I would know something about the future I can bet on it, otherwise makes no sense.. Thank you, Nathan. You give me hope.

I'm a newbie a real rookie. Nathan you are simply a God send. I v been struggling so much with my strategy and have lost quite a bundle but this gives me hope. I am based in Nairobi Kenya and I want in on anything you can teach me just throw it my way coz am willing to learn. God bless Respected Fx GOD All makes sense.

Was watching a setup on EURAUD which has now moved predictivaly south. The reason I didn't take it though was because the pair had made a lower high back on Nov when I trade with the trend how should I consider these HL when looking to go short?

Thanks for sharing your strategy, Nathan. It is simple and you explained it very well. It does demonstate that a simple strategy can be very effective and it highlights the importance of patience and money management. One of my major challenges in trading is patience and that can be very costly. I feel a strong urge to trade every time that I switch on my charts and I know that I am not alone.

I am gradually getting comfortable with trading longer term strategies and your reasoning and logic for favouring those give strong evidence that longer term strategies are the way to go. Hey Mike, glad you enjoyed the article! Yeah, you are definitely NOT alone I, too, struggle with be tempted to take a trade that does not fit my plan just because it "looks good" at that moment in time, but that is definitely not the profitable way to trade thanks again for reading and leaving a comment!

Hi Nathan, I agree with longer time frames and specifically days not hours, minutes or weeks. I my self only trade off day charts, and these are my reasons. The broker is acting against you - he loses if you win, and he wins if you lose. This is in the fine print of all new accounts. A dealing desk will give lower spreads but will actively make you lose. Days are the 'natural' time frame for trading, where as hours or minutes or weeks are arbitrary units.

Candles were always meant to be on days - from the earliest time in Japan this is how they started. Days means you can plan trades at ease.

I think these are compelling reasons to trade from day charts, so that's what I do. Joe PS. If you are interested, I just look for trends and jump on. I use pairs that naturally tend to trend for long distances such as the Euro crosses among others EURNZD etc I use MA8 and MA When the MAs are both rising, and the 8 is above the 12, I put a long entry just above the most recent high.

I trail along the MA8 until BE, then along the MA12 when it catches up. I raise the stop to below a candle that suggests the trend may have ended eg a pin bar against my trade. If it isn't taken out I wait for the MA12 to catch up and keep trailing. the opposite of all this for shorts No fib levels used. Pretty successful! Hey Joe, thanks for the great comment, I really appreciate you putting the time and effort into adding value to this post with a great, informative comment.

I don't believe I have ever heard anyone lay out the reasons for using the daily chart as you did, and that is very interesting.. I would love to learn more about your strategy, Perhaps you could write out a nice explanation of it like I did in this article and we could post it on the blog as a guest post by you.

I am sure our readers would love to get your perspective! will work on your longterm trades with this system with patience.

Will advise outcome down the road. Thanks Louis, I appreciate you taking the time to read and also leaving a comment. Let me know how you do using this strategy! Thanks for the information, I plan to start the new year with longer time frames and I was going to use 4 hour charts. But now I will look at weekly and daily charts more. Thank you.

Thanks for reading! I am glad this article may serve as a useful piece of information for you. Feel free to re-post here later on and let us know how your strategy is going using these longer time frames.

Very nice post. Always thought 4hours was long term. My problem with long term as you presented is the fact that stops and loses are usually greater too.

Some people think the market is too volatile and unpredictable for you to stay too long in a trade but I'm sure all will agree your analysis is very correct. Hey Tony, thanks for reading. I appreciate you taking time out of your day to read my article and leave a comment as well. Yeah, unfortunately, you can't really have the best of both worlds with high probability long term trades and still manage tight stops, but the best way to be profitable is to understand how to dial down your risk with smaller size trades and remain consistent even after losses.

Long term trading is very appealing for the above reasons, but as we all know, being successful in Forex trading calls for proper implementation of strategies. You need to know when to enter the market and when to leave to cash in on the pips or avoid further loss. Perhaps one of the best ways to make money in both long term and short term trading is by trading the trends.

Scratch the common mistake of trying to predict the lows and highs. These are not only almost impossible to predict, but a new low or new high is usually where a new trend begins. When you spit a new low or high a movement that stops at the old resistance by at least three pips , this is likely a new trend in the market and warrants an entry.

Most investors and traders, particularly those that try to predict the lows and highs, wait for the pair to go back down or up, beyond the resistance line, and it is usually too late.

Missing out on a trend leads to loss of opportunities and, in some cases, heavy losses. This is perhaps the best Forex trading strategy for a beginner. This type of trading entails looking for a spike in a pair, either up or down, and mentally defining a certain area of support and resistance.

The next step is to keenly watch the momentum shift as the level holds before making your entry for the long term Forex trading signal. As a swing trader, you sign up for quick entry and exit, holding your position between 2 to 7 days. There are foolproof Forex trading strategies if you can practice stringent money management practices and know that you need to stick to your chosen strategy.

The last thing you want to do as a long term trader is get impatient due to a few losses. A trading strategy is important for making money when you take the long term route. You need a strategy that reduces the risk of losing money while signing you up for those sweet profits. Losses are inevitable, but in good days, you will make a big killing. That is just the nature of the market.

At the end of the day, it is the same as gambling , mounting up your small gains and cutting losses is the best way to get rich by trading Forex without losing your mind! His devotion to trading is imminent and he also likes to share the knowledge. Save my name, email, and website in this browser for the next time I comment.

by TradingStrategyGuides Last updated Nov 18, Forex Strategies 54 comments. There are many reasons why I believe a long term trading strategy will set you up for success. More so than using smaller time frames to trade, and I will get into several of those reasons within this article. Here you can see a funny video about trading levels. I lay out a few of those reasons in a light-hearted tone in my Scalp vs Swing Article. This article has gotten a lot of attention. I believe that one of the big issues with Forex traders today is that they are so caught up in short-term trading and scalping.

Which again, I really do have a hard time believing traders can be profitable with. I am now using a long term strategy, trading the hourly charts. I think the above statement is one of the issues with Forex Traders today. And why so many have a lot of trouble being profitable. Learning this type of trading is one way you can learn how to become a successful forex trader. For some reason, the majority of traders—especially beginners—are so bent on scalping. I know my friend, Zaheer , will agree with me on this one.

Then, perhaps, using a lower time frame to actually execute the trade for more precision. Before I get into the actual strategy, I want to dig a little more into why the right perspective is important when it comes to trading long term strategies. I know that many of you only care about the actual strategy guidelines, but I believe that the following information about perspective and a holistic approach is more important than the strategy guidelines.

You can also read a million USD forex strategy. In the above chart, you see that there is a lot of bullish momentum moving toward higher highs. From this perspective, it looks as though all bullish continuation set-ups will be great entries. You'll notice the bullish rally on the 4HR chart is just a pull-back rather than a raging trend as it appeared before. Also, read the weekly trading strategy that will keep you sane. Not only is it a pullback, but it is a pullback heading into unsuspected resistance.

If we move a little bit ahead in time, you can see a bearish bounce off the resistance level. To the trader viewing only the 4HR chart, this may look like a great time to buy again in anticipation of Bullish trend continuation.

What the 4HR trader may not realize is that this is not a pullback of the 4HR trend. Rather, it is a continuation of the Weekly trend. To the 4HR trader, this looks like an unexpected major reversal in the market. To a long term trader, it is an obvious and expected continuation of market flow. It looks like this in the Weekly view:. This is why it is so important to have a long term view of the market.

Especially if you are going to call yourself a long term trader. Again, so many people looking at 4HR charts think they are long term traders.

But they are ignoring the real long term time frames. Ignoring this can get you into big trouble, just like in this real-life example. Those two bearish weekly bars you see would crush someone trying to take long positions on the 4 Hour chart. Yet they are just part of the flow in the Weekly view.

Now, I am not saying that you cannot trade profitably on the 4HR charts. I am saying that it is very difficult to make consistently profitable trades when you do not have a good perspective of the markets longer-term movement. Especially when trying to trade an intermediate time frame like the 1 or 4 hour time frames.

One major note about this strategy is that you must be disciplined if you want to succeed. Yes, you need to be disciplined with all strategies to expect success. One of the biggest mistakes that unprofitable traders make is over-trading and over-managing their trades.

As human beings, we have a desire for action and involvement. This tends to cause us to always want to have a trade open or always want to manipulate the trades we do have open. I can promise you that this will only lead to less and less profitability.

If you want to be successful using the long term strategy that I am presenting to you, you must accept that there will not be a ton of entries. Which is a good thing, in my opinion. Also, read about the best forex indicators. Look for trends on these longer-term charts that have good momentum in the respected direction.

Something like this:. Identify the direction of the trend bear or bull. Make a note to only look for entries in the direction of that trend for instance, if it is a bullish trend, look for buys.

In other words, the criteria has lined up for you to make a trade, now all you need is the signal to confirm your forecast. For this strategy, the signal is a momentum daily bar in the direction of our long term trend. An ideal daily signal candle will have a tail that has tested pierced through the Fib level, but then reversed back into the direction of the trend:. Trading is all about Math—a good strategy has winners and losers, but at the end of the year, the winners out-weigh the loser.

They will in this strategy if you follow it with discipline! To help with the math, try the forex trading position size calculator tool. Hope you guys enjoyed learning one of my favorite long term strategies. Please leave a comment with any feedback.

Comment if you plan on trying the strategy or comment if you hate the strategy! So, please give this strategy a 5 star if you enjoyed it! Trading Strategy Guides is offering a special discounted offer to our long term trading strategy. We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more.

Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. The trade shown, in my opinion, was not a solid trade. The bullish pull back piercing the fib was only followed by a small bearish candle that wasn't full bodied.

It's indecisive. If you wait for the full bodied decision candle going in the direction of the trend bearish here after piercing a major fib level you would not have entered until the 50 fib was pierced. That may have prevented you a loss on entering on any trend following candle with no substantial body decision by the market.

You're providing great info here. keep it up. Enjoyed the writing and video's but will have to go over it again a few times as I am a newbie and using longterm for the fist time. Thank you for the information, they are helpful and exciting. I think the reason most people try to scalp is they are taught to be scared of the market by teachers that are trading failures I agree with Nathan, the trader that is here for the long term is a swing trader the data that can be used is measured in volumes instead of snippets the next thing to get past is letting a profitable trade run and not being so scared of a loss you fail to maximize profits the one piece of advice I would give every trader is learn enough about Elliott Wave to distinguish the difference between motive waves and corrective waves and once you see the tell tale sign of one, know what the most likely out come of the next move is it a retrace or breakout, and how far is it expected to travel so I can set profit targets with no guess work and I can set stops that only trigger when I am proved to be wrong Good trading everyone.

Nathan, how do you deal with the swap rates with this longer term strategy? I trade this way but often have to close a trade due to the overnight swaps. What broker do you use? I am looking for a broker with competitive swap rates, I know some pairs have a positive value but I cant consider that when looking at the longer trends. Thanks, Tom.

Thanks Nathan! An awesome strategy! It is my favourite strategy. My problem is I lack the necessary patience it needs to be profitable. You wrote "Trading is all about Math—a good strategy has winners and losers, but at the end of the year, the winners out-weigh the losers.

They will, in the strategy, if you follow it with discipline! Great write-up! Very encouraging! I am definitely going back to this strategy in Excellent strategy, I have been looking for a good simple long term strategy,this will free up my time and still allow me to be involved in trading. Thanks very much 🙂.

I totaly agree.

There are several downsides to long-term trading, and the first one is the absence of action. However, long-term traders can keep their position for several months and be break-even during the range market. Affiliate Program Introducing Business Partner White Label partnership Refer a friend New. Now, I am not saying that you cannot trade profitably on the 4HR charts. One major note about this strategy is that you must be disciplined if you want to succeed.

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